Display marketing refers to visual advertisements seen online, typically in the form of banner ads, which use visuals, compelling images, text, logos and animation to place a message on the internet. We’ve discussed banner advertising and its effectiveness on the blog and would like to follow up now by discussing the metrics that can be used to measure this effectiveness. These are the tools used to measure the success of your display advertising campaign.
- Reach: Reach refers to the number of potential eyeballs that your ad will be placed in front of. This is your ad’s reach, usually the number of visitors to the site where you will be placing your ad.
- Click-through Rate: Also referred to as CTR, this metric refers to the percentage of users that click on your banner versus the total amount that are exposed to it. It’s a strong measure of effectiveness because typically the goal of a banner ad is to get users to click on it and onto the website, allowing marketers to gauge how well an ad is being received by an audience.
- Bounce Rate: The bounce rate refers to the amount of clicks through to the website that then only visited one page before exiting the site. What does this means for you? This means that the user was intrigued enough by the display ad to click on your banner but once they visited your site they were not intrigued enough, or did not find it relevant enough, to stay on the page and so they left. Although this seems like a negative factor, think of it as an opportunity to understand exactly what is not working for your consumer—the good news is your campaign may be effective, the next step is to work on your website.
- Conversion Rate: This is the percentage of users that actually click through your ad to the website and end up performing the action or goal you desired, such as a purchase or a sign-up to an e-mail.
- Return On Investment: Your return on investment (ROI) is the value you receive from launching your online campaign. It measures the cost of creating and launching your ad vs the revenue generated by the campaign. Ideally, your campaigns have a high ROI and bring money to your business!
Understanding these metrics is not difficult and can be essential to measuring the success of your campaigns. We invite you to familiarize yourself with them and see which of these are the necessary tool for your business!